Saving for Retirement: A Little Sacrifice Now for a Better Future
Let’s say you are driving across the country to California. You’ve never been the West Coast, and you’ve never seen the ocean. But you made it your goal to take a cross country trip to California and now you’re on your way. You’re imaging the beautiful blue ocean, pounding surf and sand between your toes...but the drive is slowly killing you.
“This long, tiresome, arduous drive better be worth it,” you say.
You get to your destination, and it’s even more beautiful than you could’ve imagined. The drive was worth it, indeed.
There are a lot of similarities between the above scenario and working toward retirement. You’ve imagined everything you want to do in retirement, all the trips and experiences. But the slowness of each year and the money you are putting away is draining you. Will it be worth it? For those who have made a New Year’s resolution to save for their retirement starting 2015, Lincoln Savings Bank is here to help.
It would be easy for us to say “Make contributions toward your employer’s 401(k)” or “Open a Roth IRA to start saving.” But where does that money come from?
Sacrifice Now for a Better Living Later
You can make small changes now to help you optimize your cash flow for retirement, however far away it is:
?Downsize your home if your kids are grown up and out of the house
?Trade in your car for something more practical and fuel efficient
?Take your IRA or other retirement contributions into account in your budget
?Be okay with having less expensive things
Yes, contributing to various accounts definitely helps your money. If your employer offers a 401(k) with a matching contribution, you should be taking full advantage of that. Talk with us at Lincoln Savings Bank. We offer a variety of different retirement savings plans, each with their own features and benefits. Also, if you don’t have an emergency fund in place for six months of expenses, you should stash away 15-20 percent of your income in your savings account.
Most of all, you need to adopt the mindset that you’re in a marathon race, not a sprint. If you can settle for something less than the very best and save the difference, it will pay rewards in the years to come. By following these basic principles, you are positioning yourself to have the resources to make that cross country trip to California or do whatever you’ve been dreaming for retirement.
Lincoln Savings Bank, member FDIC